Slide 1: Q4 FY2024 Earnings Call
Q4 FY2024 Earnings Call June 20, 2024
Slide 2: Safe Harbor and Basis of Presentation
2 Safe Harbor and B asis of Presentation Forward - Looking Statement Safe Harbor — This presentation includes “forward - looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. You can generally identify forward - looking statements by the Company’s use of for
Slide 3: Q4 Fiscal 2024 At a Glance
3 Q4 Fiscal 2024 At a Glance Comparisons are to Q 4 FY2 3 • Volume growth across all four major product categories • High levels of multi - family and commercial activity • An improved single - family backdrop • Resilient pricing in Wallboard, Ceilings and Complementary Products • Positive contribut
Slide 4: Strategic Growth Priorities – Q4 FY24 Update
4 Drive Improved Productivity & Profitability Strategic Growth Priorities – Q4 FY24 Update Capitalize on existing fixed investments in locations & equipment where we are underpenetrated or below expected share Grow Complementary Product opportunities to diversify and profitably expand our product of
Slide 5: Per Day Sales Highlights – Q4 FY24
5 Per Day Sales Highlights – Q4 FY24 U.S. Per Day Residential Sales Q424 Net Sales Per Day $ 1.4 B Per Day Net Sales 2.1% U.S. Per Day Commercial Sales 6.0% 2.7% 6.7% • Positive growth in demand for commercial, multi - family and single - family drove volume increases in all of our major product cat
Slide 6: Solid Results Despite Deflationary Steel Pricing
6 $424.5 $451.2 32.5% 31.9% 31.0% 31.5% 32.0% 32.5% 33.0% 33.5% $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 Fiscal Q4 2023 Fiscal Q4 2024 Gross Profit Gross Margin ($ mm) Solid Results Despite Deflationary Steel Pricing * For a reconciliation of Adjusted SG&A, Adjusted EBITDA and Adjusted EB
Slide 7: Attractive Capital Structure Supports Strategic Priorities
7 Attractive Capital Structure Supports Strategic Priorities • Repurchased 174.6K shares for $16.0 million during Q424 • $200.5 million of repurchase authorization remaining at 04/30/24 1.4x 1.5x 1.5x 1.5x 1.7x 04/30/2023 07/31/2023 10/31/2023 01/31/2024 04/30/2024 $51 $45 $40 $303 $22 $830 FY25 FY2
Slide 8: End Market & Product-Level Expectations
8 End Market & Product - Level Expectations Product Category Q1 FY25 YOY Volume Expectations Q1 FY25 YOY Price/Mix Expectations Wallboard • Single - family: Up mid single digits • Multi - family: Flat to up slightly • Commercial: Up low - single digits • Total Wallboard: Up low - to - mid single dig
Slide 9: Consolidated Expectations
9 Consolidated Expectations Metric for Q1 FY25 Q1 FY25 Expectation Net Sales Up mid - single digits YOY Gross Margin ~31.5% Net Income $77 million - $79 million Adjusted EBITDA 1 $160 million - $165 million Metric for Full Year FY25 Full Year FY25 Expectation Interest Expense ~ $72 million - $74 mil
Slide 10: Appendix
10 Appendix
Slide 11: Summary Quarterly Financials
11 Summary Quarterly Financials (In millions) 1Q23 2Q23 3Q23 4Q23 FY23 1Q24 2Q24 3Q24 4Q24 FY24 (Unaudited) Wallboard Volume (MSF) 1,191 1,232 1,058 1,130 4,611 1,204 1,231 1,101 1,234 4,769 Wallboard Price ($ / '000 Sq. Ft.) 438$ 474$ 473$ 481$ 467$ 475$ 476$ 473$ 475$ 475$ Wallboard 522$ 585$ 501$
Slide 12: Quarterly Cash Flows
12 Quarterly Cash Flows (1) Free cash flow is a non - GAAP financial measure defined as net cash provided by (used in) operations less capital expenditures. D ifferences may occur due to rounding. ($ in millions) (Unaudited) 1Q23 2Q23 3Q23 4Q23 FY23 1Q24 2Q24 3Q24 4Q24 FY24 Net income $ 89.5 $ 103.2
Slide 13: Q4 2024 Net Sales
13 Q4 2024 Net Sales 1. Organic net sales growth calculation excludes net sales of acquired businesses until first anniversary of acquisition date an d i mpact of foreign currency translation. ($ in millions) (Unaudited) FY24 FY23 Reported Organic (1) Organic (1) 1,356.3$ 1,304.1$ Acquisitions 57.1
Slide 14: Quarterly Net Income to Adjusted EBITDA Reconciliation
14 Quarterly Net Income to Adjusted EBITDA Reconciliation Commentary A. Represents changes in the fair value of stock appreciation rights B. Represents changes in the fair value of noncontrolling interests C. Represents non - cash equity - based compensation expense related to the issuance of share
Slide 15: Net Income to Pro Forma Adjusted EBITDA Reconciliation
15 Net Income to Pro Forma Adjusted EBITDA Reconciliation Commentary A. Represents changes in the fair value of stock appreciation rights B. Represents changes in the fair value of noncontrolling interests C. Represents non - cash equity - based compensation expense related to the issuance of share
Slide 16: Income Before Taxes to Adjusted Net Income Reconciliation
16 Income Before Taxes to Adjusted Net Income Reconciliation Commentary A. Depreciation and amortization from the increase in value of certain long - term assets associated with the April 1, 2014 acquisition of the predecessor company and amortization of intangible assets from the acquisitions of Ti
Slide 17: Reported SG&A to Adjusted SG&A Reconciliation
17 Reported SG&A to Adjusted SG&A Reconciliation Commentary A. Represents changes in the fair value of stock appreciation rights B. Represents changes in the fair value of noncontrolling interests C. Represents non - cash equity - based compensation expense related to the issuance of share - based a
Slide 18: Leverage Summary
18 Leverage Summary (1) Net of unamortized discount of $0.3mm, $2.5mm, $2.4mm, $2.3mm and $2.0mm as of April 30, 2023, July 31, 2023, October 31, 202 3, January 31, 2024, and April 2024 respectively. (2) Net of deferred financing costs of $2.1mm, $4.1mm, $3.9mm, $3.8mm and $4.4mm as of April 30, 202
Slide 19: Adjusted Gross Profit Reconciliation
19 Adjusted Gross Profit Reconciliation
Slide 20: Net Income to Adjusted EBITDA Outlook Reconciliation
20 Net Income to Adjusted EBITDA Outlook Reconciliation Q1 FY25 Net Income $77 - $79 Interest expense, net 18.6 - 19.2 Provision for income taxes 26.1 - 26.9 Depreciation and amortization expense 35.2 - 36.3 Other Adjustments 3.0 Adjusted EBITDA $160 - $165 $ in millions